Lipella Pharmaceuticals Inc. Enacts One-for-Eight Reverse Stock Split

Lipella Pharmaceuticals Inc. (NASDAQ: LIPO) has announced a significant corporate action through the enactment of a one-for-eight reverse stock split. The decision, which was executed on November 7, 2024, by the pharmaceutical company, came into effect following approval received at an annual stockholders’ meeting held on September 10, 2024.

The reverse stock split involved a structural adjustment with the filing of a certificate of amendment (the “Charter Amendment”) to the company’s second amended and restated certificate of incorporation. This move resulted in the consolidation of all outstanding shares of Lipella Pharmaceuticals’ common stock, where every eight shares were converted into one share.

Effective as of 5:00 p.m. Eastern Time on November 7, 2024, the reverse stock split became operational. As a consequence of this action, the common stock of Lipella Pharmaceuticals began trading on the Nasdaq Capital Market on a split-adjusted basis as of November 8, 2024.

Importantly, the reverse stock split did not alter the overall number of shares of capital stock authorized for issuance by the company, which continues to adhere to the stipulations outlined in the Certificate of Incorporation. Fractional shares resulting from the reverse stock split were not distributed; instead, holders entitled to fractional shares will be compensated the equivalent value in cash as of the reverse stock split’s date. This adjustment also extended to all outstanding options and warrants of Lipella Pharmaceuticals as of the effective date of the reverse stock split.

In facilitating the process, Lipella Pharmaceuticals’ transfer agent, Nevada Agency and Transfer Company, has been designated as the exchange agent. They have furnished detailed instructions to stockholders of record on exchanging their certificates for the adjusted common stock.

For further insights and comprehensive details regarding the Charter Amendment and the reverse stock split, interested parties are encouraged to refer to the complete text of the Charter Amendment, provided as Exhibit 3.1(i) in the Current Report on Form 8-K submitted by Lipella Pharmaceuticals.

The company also disclosed that the new CUSIP number for its common stock is 53630L 209, reflecting the post-reverse split stock identification.

This release comes under Item 5.03 of the filing, addressing amendments to articles of incorporation or bylaws and signifies a significant milestone for Lipella Pharmaceuticals as it charts its course in the market.

In compliance with regulatory requirements, Lipella Pharmaceuticals has officially signed off on this report on November 7, 2024, as attested by Jonathan Kaufman, the company’s Chief Executive Officer.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Lipella Pharmaceuticals’s 8K filing here.

Lipella Pharmaceuticals Company Profile

Lipella Pharmaceuticals Inc, a biotechnology company, focuses on developing drugs by reformulating the active agents in existing generic drugs and optimizing these reformulations for various applications. The company develops LP-10, a formulation of tacrolimus that has completed Phase 2a clinical trial for patients with radiation-induced hemorrhagic cystitis; LP-310, a formulation of tacrolimus for the treatment of oral lichen planus; and LP-410, an oral liposomal formulation of tacrolimus for the treatment of oral graft-versus-host disease (GVHD).